Warsh Defies Trump: Fed Hikes Interest Rates Amid Inflation Fears

Fed Chair Kevin Warsh defied President Trump's demands to keep interest rates low by raising them by 25 basis points to 3.75-4% with a unanimous vote.

This move marks the Fed's first increase since July 2023, and while markets had seen a 90% likelihood of it happening, some officials dissented in favor of a hike last time around.

Warsh stated that inflation is too high and has been for too long, echoing comments from chief economist Stephanie Roth at Wolfe Research, who said the hike was about maintaining credibility with the market and Fed.